Energy

81% of large-scale renewable energy projects were developed at a lower cost than their fossil fuel counterparts. (Image source: Adobe Stock)

Renewable energy remains highly competitive, even as fossil fuel prices return to more typical levels, according to Renewable Power Generation Costs in 2023, a report released by the International Renewable Energy Agency (IRENA) at the Global Renewables Summit during the UN General Assembly in New York.

The report highlights that of the record 473 GW of new capacity added in 2023, 81%—equivalent to 382 GW—of large-scale renewable energy projects were developed at a lower cost than their fossil fuel counterparts.

IRENA’s findings show that after years of falling costs and advancing technologies, particularly in solar and wind, the benefits of renewables—both socio-economic and environmental—are more compelling than ever.

Solar PV costs in 2023 dropped dramatically, averaging just four US cents per kilowatt-hour, making them 56% cheaper than fossil fuel and nuclear alternatives. Since 2000, the deployment of renewable power has saved up to US$409bn in fuel costs in the global power sector.

“Renewable power remains cost-competitive vis-à-vis fossil fuels," said IRENA’s director-general, Francesco La Camera. "The virtuous cycle of long-term support policies has accelerated renewables. In return, growth has led to technology improvements and cost reductions. Prices for renewables are no excuse anymore, on the contrary. The record growth of renewables in 2023 exemplifies this. Low-cost renewables represent a key incentive to significantly increase ambition and triple renewable power capacity by 2030, as modelled by IRENA and set by the UAE Consensus at COP28.”

IRENA projects that meeting the goal of tripling renewable energy capacity by 2030 would require global renewable capacity to reach 11.2 TW, with an average of 1,044 GW of new capacity added each year. Solar PV and onshore wind are expected to contribute 8.5 TW of this growth, according to IRENA’s World Energy Transitions Outlook.

Achieving this target will also rely on key enablers like energy storage. The cost of battery storage projects has dropped by 89% since 2010, helping to address challenges in grid infrastructure and facilitating the integration of higher shares of solar and wind energy.

Asian markets to see more growth

La Camera added, "In the coming years, remarkable growth across all renewable energy sources is expected, giving countries great economic opportunities. Our analysis indicates that solar PV and onshore wind will have the biggest impacts on the tripling of renewables. Thanks to low-cost renewables in the global market, policymakers have an immediate solution at hand to reduce fossil fuels dependency, limit the economic and social damage of carbon-intensive energy use, drive economic development and harness energy security benefits."

In 2023, the global weighted average cost of electricity from new renewable projects saw declines across several technologies: solar PV dropped by 12%, onshore wind by 3%, offshore wind by 7%, concentrating solar power by 4%, and hydropower by 7%.

Non-OECD economies, where electricity demand is growing and new capacity is needed, will benefit significantly from renewable energy projects. These projects, developed at lower costs than fossil fuel-based alternatives, will reduce electricity system costs throughout their operational lifespan.

Asia saw the highest cumulative savings between 2000 and 2023, with an estimated US$212bn, followed by Europe with US$88bn, and South America with US$53bn.

Renewable power generation is now the most cost-effective option for new power projects. Policymakers and stakeholders need to ensure that policies, regulations, market structures, and financing are aligned with the goal of tripling capacity, with updates to Nationally Determined Contributions for the Paris Agreement expected by 2025.

The 2606 engine is compatible with renewable liquid fuels. (Image source: Perkins)

Perkins has unveiled its new Perkins 2606 diesel engine, specifically designed and optimised for electric power generation.

Initially targeting regions with limited or no emissions regulations, the 13-litre, six-cylinder engine is built on the proven Perkins 2600 Series platform, known for its high power density and fuel efficiency. The industrial platform, introduced last year, has already undergone more than 30,000 hours of design validation, with over 120 patents granted or pending across the entire engine series. Commercial production of the 2606 engine is set to begin in the second half of 2025.

Delivering between 321-523 kW of prime power and 365-572 kW for standby use, the new engine enhances Perkins' electric power range. Its flexibility allows it to switch seamlessly between 50 and 60 Hz, as well as accommodate various voltage requirements, making it suitable for diverse regions and applications such as data centres, industrial sites, power plants, and remote work locations.

The 2600 Series is engineered to operate in challenging conditions, handling altitudes up to 3,500 metres and extreme temperatures ranging from -40°C to 60°C.

Compatibility with HVO

The engine’s design improvements, such as integrated components and a 45% reduction in leak joints, contribute to enhanced reliability, lower fluid consumption, and extended service intervals of up to 1,000 hours for oil and fuel filters—minimising downtime and reducing operational costs.

Additionally, the 2606 engine is compatible with renewable liquid fuels, including 100% hydrotreated vegetable oils (HVO), B100 distilled biodiesel, and up to B100 fatty acid methyl ester (FAME) biodiesel. To ensure optimal performance and reliability, users must adhere to the official Perkins fuel guidelines available on their website. The engine’s architecture also supports future developments in natural gas and hydrogen fuel technologies.

"Generator sets remain essential for both stationary and mobile power generation, particularly in areas where the electrical grid is unreliable or non-existent," said Jaz Gill, vice president of Perkins global sales, marketing, service, and parts. "Diesel engines continue to power these systems, and the Perkins 2606 engine leverages our investment in the 13-litre platform to deliver a versatile, high-performing power solution with low ownership and operating costs."

TAQA has launched a new brand identity. (Image source: TAQA)

Abu Dhabi National Energy Company (TAQA), the integrated utility company, has launched a new brand identity for its group of companies

The rebranding underpins the company’s strategy to increase awareness of extent of TAQA’s utility activity covering the entire utility value chain, as it pursues growth through delivering integrated power and water services in the UAE and internationally.

Under the new brand identity, Abu Dhabi Distribution Company (ADDC) and Al Ain Distribution Company (AADC) will be brought under a single new brand, TAQA Distribution; Abu Dhabi Transmission and Despatch Company (TRANSCO) will become TAQA Transmission; Sustainable Water Solutions Holdings (SWS Holdings) will be rebranded as TAQA Water Solutions; and Abu Dhabi Energy Services (ADES) will become TAQA Energy Services.

Boosting awareness

Jasim Husain Thabet, TAQA’s Group chief executive officer and managing director, commented, “In the past four years we have been driving improvements in the performance of TAQA’s operating companies and growing our business. These changes to the brands of our operating companies will provide a major boost to the awareness and understanding of the scale and breadth of TAQA’s role in Abu Dhabi and the scope of our activities as one of the largest integrated utilities in EMEA and a national champion for the UAE. TAQA’s operations underpin part of the daily life of millions of people globally through the power and water services we provide. We take our responsibility very seriously and are determined to continue to be at the heart of the UAE drive towards net zero and to play our role in the energy transition.”

Omar Al Hashmi, TAQA Distribution’s incoming chief executive officer, added, “ADDC and AADC have powered our communities for decades, ensuring that essential energy and water is delivered to every home in Abu Dhabi. Unifying the two will create a distribution powerhouse, with the scale and capability to support TAQA’s overarching mission of being a low-carbon power and water champion.

“Combining the strengths and talents of both into a single entity will enhance the service we provide to our customers while also creating a more dynamic and more innovative organisation. As TAQA Distribution, we are committed to continuing to serve our communities while adhering to the utmost standards of excellence.

“Moving into 2025, the rebrand will allow TAQA’s market leading businesses to build on their track record of operational excellence, with a continued focus on building its digital and advanced technology capabilities and strengthening its strategic partnerships to support TAQA’s long-term growth in line with the Group’s sustainability and ESG targets.”

The mid-size BESS units are engineered to deliver reliable power in demanding conditions. (Image source: Aggreko)

Aggreko has introduced two new mid-size Battery Energy Storage Systems (BESS) to support regional businesses in their shift towards sustainable energy solutions.

These new plug-and-play systems, available in 500 KW and 250 KW capacities, are designed to meet a broad spectrum of energy storage needs for industrial and commercial applications. They optimise overall system performance, cut operational costs, and significantly lower carbon emissions.

The mid-size BESS units are engineered to deliver reliable power in demanding conditions, providing versatility, efficiency, and dependability. These batteries can operate independently, as part of a hybrid setup with a generator, or in combination with additional BESS units. They are particularly well-suited for renewable energy projects across various sectors, including events, construction, petrochemicals, utilities, data centres, and mining.

These systems are eco-friendly, helping companies comply with emission standards while their rapid installation and commissioning reduce generator usage and fuel consumption, leading to cost savings and greater operational independence. Aggreko's renowned customer support, including remote monitoring, ensures that the units deliver consistent and uninterrupted service.

Adam Read, head of sales - Middle East, Aggreko, stated, “We are excited to introduce our new mid-sized Battery Energy Storage Systems (BESS) to the regional market. They can be used as a standalone power source or in combination with mobile solar panels, wind or generators. To meet the constantly evolving energy demands of businesses, our BESS units are made scalable to match changing needs. A single unit can be easily combined into an integrated energy storage system to deliver the power and energy capacity required for any business. Incorporating batteries can be a significant step toward sustainability for any company. Additionally, battery-based solutions can provide reliable emission-free energy for specific processes while reducing fuel costs.”

The mid-size BESS units also help manage fluctuating loads by storing surplus energy for future use, improving reliability, and eliminating low-load periods. Ready for immediate deployment, these systems include all essential components like batteries, inverters, HVAC, and fire protection. Both units feature an ECO controller, which simplifies the monitoring and control of all integrated systems. With zero emissions, no noise, and minimal maintenance requirements, these systems enable businesses to reduce their environmental impact.